In the first suit to be filed under RMBS Working Group, JP Morgan has been served civilly over the mortgage backed securities sold by Bear Stearns, according to an article in the New York Daily News. The RMBS Working Group, created by the Obama Administration, investigates and prosecutes misconduct that contributed to the financial crisis.

In 2006 and 2007, investors lost around 22.5 billion dollars in the subprime funds issued by Bear Stearns. The Attorney General alleged in his suit that Bear Stearns held these RMBS funds out as being “carefully evaluated” and that the investors were given a false sense of security. The article goes on to state that the AG alleged the executives of Bear Stearns knew of the shortcomings of the funds and yet did nothing to protect their investors. JP Morgan has responded that the actions relied upon for the civil suit filed occurred before JP Morgan acquired Bear Stearns in 2008.

If you or someone you know has lost money as a result of a mortgage-backed investment, please contact Richard Frankowski at 205-747-1903 to discuss your potential legal remedies.